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Edexcel Business A level Unit 1 > Mass and Niche Markets > Flashcards

Flashcards in Mass and Niche Markets Deck (9)
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What is the difference between mass markets and niche markets?

-In a mass market, customers' needs are less "specific" and more "general"

-A niche market is when a business sells a product to a small customer group, in a market which has often been untouched by larger businesses.


Give an example of a mass and a niche market

-Mass market - LuLu, Carrefour
- Niche market - Louis Vuitton, Gucci


Give two positives of mass and niche markets

-Mass Markets: - Lower risk since resources are focused on one large market.
-It is associated with higher production output and capacity + potential for economies of scale

-Niche Market: Gives you a clear focus since you are targeting a particular group of customers.
-Profit margins are often higher.


Give two negatives of mass and niche markets

-Niche Markets-Vulnerable to market changes
-Likely to attract competition if successful

-Mass Markets-Fixed Costs
-Fierce Competition


Which two ways can market size be measured?

-By Volume
-By Value


What is market share and how is this calculated?

-This is the proportion of a market that is held by a business.
-It is calculated like this: (Sales of a business / total sales in the market) x 100


What is a ‘market leader’?

The business who has the most market share in the market.


What is meant by a ‘market’?

A market is the place where buyers and sellers meet. Businesses can be categorized depending on which market they operate in.


Why is it important for businesses to know their market share?

To know whether their product/s is failing or not so that they know what their next steps are.